The Australian dollar has fallen a bit during the trading session on Thursday to reach down towards the 0.7250 level. That of course is an area that continues to see a lot of support, as we have seen it offer support during the previous week or so. Ultimately, this is a market that has been moving in a 100 point range for the most recent trading, so it is likely to see a lot of choppy behavior. That being said, if we do break down below the lows from earlier this week, it is possible that we could make a move towards the 50 day EMA. The Australian dollar certainly looks as if it is trying to build up enough momentum to go higher, but right now there are a lot of fundamental issues out there that could cause problems.
AUD/USD Video 20.11.20
The Reserve Bank of Australia is likely to continue to buy bonds for at least the next three years to do a form of phantom quantum easing, which weighs upon the Aussie in general. However, the Federal Reserve is likely to keep the “pedal to the metal” as well, as the Americans are likely to be just as loose. With this being the case, I think we continue to see a lot of choppy behavior and this explains a lot of the benign behavior of the currency markets in general. I do think we are a bit heavy here so I am expecting a pullback but if we were to break above the 0.74 level, then the Aussie will probably continue to go higher for a bigger move.
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